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PulteGroup (PHM) Gains As Market Dips: What You Should Know

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PulteGroup (PHM - Free Report) closed the most recent trading day at $77.14, moving +0.68% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.

Coming into today, shares of the homebuilder had lost 1.72% in the past month. In that same time, the Construction sector lost 2.61%, while the S&P 500 gained 2.08%.

Investors will be hoping for strength from PulteGroup as it approaches its next earnings release, which is expected to be October 24, 2023. In that report, analysts expect PulteGroup to post earnings of $2.79 per share. This would mark year-over-year growth of 3.72%. Our most recent consensus estimate is calling for quarterly revenue of $4.04 billion, up 2.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.62 per share and revenue of $16.49 billion, which would represent changes of +7.59% and +1.6%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for PulteGroup. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PulteGroup is currently a Zacks Rank #1 (Strong Buy).

Investors should also note PulteGroup's current valuation metrics, including its Forward P/E ratio of 6.59. This represents a discount compared to its industry's average Forward P/E of 8.53.

Also, we should mention that PHM has a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Home Builders was holding an average PEG ratio of 0.72 at yesterday's closing price.

The Building Products - Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 4, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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